Yr 11 Mock 1.1-1.4 Flashcards
Factors of Production
What is needed to produce products and services.
Factors of Production - Land
natural resources, renewable and non-renewable. e.g. Coal, wood, animals, mines, as well as actual land space
Factors of Production - Labour
Work done by people to produce goods and services
Factors of Production - Capital
Things that enable production. e.g. Factories, machines and schools
What does the term “Enterprise” mean?
Someone who take risks to produce things using the other factors of production
What does the term “Objectives”?
The specific goals set by a business to reach its aims
Characteristics of an Entrepreneur
Motivated, risks-takers, organised, innovative
Objectives of an Entrepreneur
Financial reward, independence, to fulfill a need for goods or services or have an interest in the area of business
The Business Environment
All the factors, both internal and external that effect a business
Raw Materials
Unprocessed resources from land
Resources
Things that are used to produce goods and services
Explain one opportunity that the introduction of new technology creates for a business.
P(oint): Improve Products.
B(ecause): Smaller, Faster, & Easier to Use. e.g. Phones.
L(ead to): Opportunity to Fulfil Developing Customer Wants.
T(erefore): High Chance of Generating Sales & Success.
Explain one way in which a gap in the market creates a marketing opportunity
P: Gives an Opportunity to Fulfil that Gap.
B: Certain Want isn’t Being Fulfilled by Another Business.
L: Entrepreneur Taking that Risk.
T: Opportunity to Generate Sales & Achieve Success.
Explain one reason why someone might set up their own business
P: Personal Satisfaction.
B: Success Generates Awards, Recognition & Profit.
L: Achievement.
T: Fulfilment.
Describe why a business may find it difficult to add value to its products or services.
P: Costly.
B: Improve Quality with Higher Quality Raw Materials.
L: Increase in Variable Costs.
T: Lower Margin of Safety or Sales Depending on Whether Price Increases.
P: Time-Consuming.
B: Spend More Time on Service for Convenience.
L: Employees Working Longer Hours.
T: Cause Dissatisfaction & Increased Turnover.
Which one of the following is most likely to be a reason why a business should try to add value to its products? Select one answer:
A - To increase the materials it buys
B - To add a USP
C - To differentiate its product
D - To improve its chances of survival in the long term
D.
A would increase costs.
B is a way of adding value not a reason.
C is a reason but this is done for long term survival.
Which two of the following are key enterprise skills? Select two answers:
A - A willingness to take risks
B - A willingness to employ at least five workers
C - A willingness to take the initiative
D - A willingness to follow a course of study in business
E - The ability to raise finance
A & C
B isn’t general enough.
D it shows dedication which is the key skill.
E isn’t really a skill.
State one way that a business could meet customer needs through providing high-quality products.
Products lasts longer.
Could be more comfortable.
More attractive.
Which one the following is a reason why customer service is important to the success of a small business? Select one answer:
A - Customers are the one who add value
B - A small business wants to get repeat purchases
C - Customers will buy a product if the price is right
D - It has to meet legal requirements
B
A isn’t true.
C doesn’t relate to customer service.
D doesn’t relate to customer service.
Discuss why a business may conduct extensive market research before it begins trading.
P: Identify gaps in the market.
B: Research shows market trends and outlines products currently sold.
L: Identifying & understanding customer needs.
T: Make an informed decision reducing money wastage.
P: Identify and understand competitors.
B: Research shows other market activity.
L: Informed product differentiation.
T: Competitive advantage increases success.
Which one of the following would not be an appropriate method of market research for a new small business? Select one answer:
A - Employing a specialist market research company to carry out a survey of 10 000 people
B - Using published statistics about market trends
C - Asking customers to fill in a short questionnaire on the premises
D - Conducting an interview
A - Unlikely to get so many participants
Define the term ‘market research’.
collecting information about the market or what customers want that might help a business to be more successful and spot gaps in the market.
Give one way in which a business might collect quantitative market research data.
Surveys
Explain one way in which market research data might benefit a business.
P: Informed decisions.
B: Fulfil customer wants.
L: Fulfilling demand reduces wastage.
T: High sales likelihood improves chances of success.
Define the term ‘market segment’.
A group of consumers with similar characteristics and buying habits.
Explain one reason why a business may choose to segment its market.
P: Meet specific customer needs.
B: Separates out target markets.
L: Increased customer satisfaction.
T: Build close customer relationships and repeat sales.
State one possible method a business could use to differentiate its product.
Offering a lower price.
Offering higher quality.
